Importance The article sets forth principles for managing innovative activities of entities in their transition to the digital economy.Objectives The research aims to outline measures for streamlining and enhancing the modernization of the Russian industrial enterprises by restructuring the innovation management system.Methods The research relies upon methods of logic investigation, forecast, analysis and synthesis on the basis of the system information approach. The novelty of the article is that it provides the rationale for using the principles for managing innovative activities of entities during their transition to the digital economy.Results We analyze activities to upgrade the Russian industry, supplement the principles for managing innovative activities of entities. We make our suggestions on how the Russian industrial enterprises should be more rapidly and effectively modernized and the innovation management system should be restructured.Conclusions and Relevance It is important for Russia and national enterprises to sell their technologies, which may be unknown for other countries. Therefore the Russian enterprises will utilize resources they gain from the development of their own technologies and acquisition of the existing technologies.